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CSEET · Business Laws and Management · Introduction to Management

Ananya Textiles Ltd. has a plant manager who meets the production target but uses 30% more raw material than the standard allows, wasting resources. In management terms, which is the most accurate assessment?

The manager is effective but not efficient. Effectiveness is achieving the target, which was met, while efficiency means using minimum resources for the output. Consuming 30% more raw material than the standard shows wasteful use of inputs, so efficiency is lacking.

  1. AEffective but not efficientCorrect
  2. BEfficient but not effective
  3. CBoth effective and efficient
  4. DNeither effective nor efficient

Explanation

Effectiveness means completing the task or achieving the target, which was met. Efficiency means doing it with minimum cost or input; using 30% extra material means resources were wasted. So the manager is effective but not efficient. Calling it efficient wrongly ignores the waste.

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